How do I transfer a BC property to my child or add family to the title?

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A lawyer or notary registers a transfer; property transfer tax is due on the value moved unless a family exemption fits, and for income tax a gift counts as sold at market value. Giving a property to family, or adding a child or partner to the title, is a transfer like a sale: a lawyer or notary registers it, and property transfer tax is due on the market value of what changes hands unless one of the Act's family exemptions applies. For income tax a gift counts as sold at market value, and a parent who adds an adult child for nothing is presumed to keep the beneficial ownership unless they meant a gift. Look up the address or PID on PlaceDossier to see the record for that lot. How it's done: A transfer of all or a share of the land is drawn and filed at the Land Title Office by a lawyer or notary, with a property transfer tax return and a transparency declaration (see the lawyer or notary and land owner transparency pages). Adding someone means transferring a share to them, as joint tenants or tenants in common. Property transfer tax on a gift: The tax falls on a transfer's fair market value, whether or not anything is paid. Adding someone to the title transfers a share, so the tax is on that share's value (our reading of the Property Transfer Tax Act ss. 1, 2). The home of either of you: A transfer to a related individual is exempt when the land has been the principal residence of the giver, or of the one receiving it, for at least 6 months in a row just before (s. 14 (3) (b)). Related means a spouse (married, or 2 years in a marriage-like relationship), child, grandchild or great-grandchild, parent, grandparent or great-grandparent, a child's spouse, or a spouse's child or forebear, and they must be a Canadian citizen or permanent resident (ss. 1, 14 (1)). A small lot only, in full: For that exemption, the home must be on a parcel of 0.5 ha or less, with buildings for 3 families or fewer and nothing but residential improvements (s. 14 (1)). On a bigger lot, or with a barn or shop, only the home and the share of the land that 0.5 ha is of the parcel are exempt (s. 15). A family cabin: A transfer to a related individual is exempt for a recreational residence: land the giver used seasonally for recreation, classed residential, no larger than 5 ha and worth no more than $275,000 (ss. 14 (1), 14 (3) (a) (ii)). A family farm: A transfer of a family farm, farm-class land used, owned and farmed by the family, is exempt to a related individual, a sibling or a sibling's spouse (ss. 14 (1), 14 (3) (a) (i)). Other exempt changes: Also exempt: a transfer to a spouse or former spouse under a written separation agreement or a Family Law Act order (s. 14 (3) (h)), changing a joint tenancy to a tenancy in common among the same owners in the same shares (s. 14 (3) (i)), and the survivor taking the title when a joint tenant dies (s. 14 (3) (m)). Income tax: a gift is a sale: Giving property, or selling it for less than it's worth to family, counts for income tax as selling it at its fair market value, so a capital gain can be owed on the share given; the one receiving a gift takes it at that value (Income Tax Act s. 69 (1) (b), (c)). A sale below value to family can tax the gap twice, as the buyer's cost stays what they paid (our reading of s. 69 (1)). To a spouse: Property an individual moves to a spouse or common-law partner, both living in Canada, passes at its cost, with no gain then, unless the giver elects otherwise on their return (Income Tax Act s. 73 (1), (1.01)). Adding an adult child: When a parent puts an adult child on title for nothing, the courts presume the child holds that share in trust for the parent, and it goes back to the parent's estate, unless the child shows the parent meant a gift; it turns on what the parent intended at the time (the Supreme Court of Canada's rule in Pecore v. Pecore, 2007 SCC 17, in our words). A written record of what was meant matters. Before you sign: A mortgage on the title usually needs the lender's consent to a transfer, and a new owner's own debts and family claims can reach the share they now hold (our reading). The one living there applies for the home owner grant in their own name each year (see the home owner grant). What a report shows: A report gives the lot's PID and the official records to search; it doesn't show who owns a lot or what's on its title.

How do I transfer a BC property to my child or add family to the title?

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